11:05 AM ▪
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The hype around cryptocurrency hoarding companies seems to be dying down. Flows into these crypto-treasury companies have just dropped to their lowest level in almost a year, signaling a clear slowdown in momentum seen after the US elections in 2024. According to DefiLlam data, investments in these structures are decreasing as the market is going through a correction phase. Can the company’s crypto-treasury model withstand a less euphoric market?
In short
- Corporate crypto-treasury flows fall to lowest level since October 2024.
- Investments in these companies are slowing sharply after the post-election US euphoria.
- Crypto treasury companies are now forced to demonstrate the real utility of their digital assets.
- New strategies are emerging to generate income between staking, mining and decentralized funding.
Flows to crypto treasuries will drop to the lowest level
Digital Asset Treasury (DAT) entrants have slowed significantly in recent months, despite their 2025 explosion.
DefiLlam data indicated that monthly inflows now stand at about $555 million, their lowest level since October 2024, the period before the US election-related surge.
The published figures show a particularly significant development of flows in recent months:
- Inflows drop to $32.4 million ahead of 2024 US presidential election;
- Flows jumped to more than $12.3 billion following the announcement of results and a regulatory change favorable to cryptocurrencies;
- In 2025, monthly inflows remained well below $10 billion;
- They eventually fell to $555 million, the lowest level in nearly a year.
This decline occurs in a market environment that has become more difficult. The sector was affected by the crypto market crash in October, which triggered several months of a bear market and pushed cryptocurrency prices back to levels seen before the 2024 US election.
Crypto treasury companies have struggled to reinvent their model
Faced with this turn of the cycle, some players in the sector believe that crypto-treasury companies must evolve to remain relevant. Patrick Ngan, chief investment officer at Zeta Network Group, points out that these companies can no longer just hoard cryptocurrencies. “Companies holding bitcoins in their coffers now have to demonstrate that they actually know how to use the asset, not just store it,” he explains.
In this perspective, there are several ways to turn these reserves into sources of income. Companies could use their assets through staking, verification on proof-of-stake networks, proof-of-work crypto-mining or loans in decentralized finance. The goal is to generate real cash flows, rather than relying solely on asset price appreciation.
Some investors are already exploring hybrid strategies. Real estate entrepreneur Grant Cardone, for example, combined real estate and bitcoin in mixed investment vehicles. He explains that this approach allows for the benefit of property appreciation, tax benefits and rental income reinvested in the purchase of BTC. “If a company only holds bitcoins, why would I invest in that company? Real estate remains the best base for corporate treasuries because it’s not an optional product: people always need housing.”states.
The decline in corporate crypto-treasury flows highlights the vulnerability of the long model supported by market growth. In a more uncertain environment, these companies will need to demonstrate their ability to generate value from their assets. Meanwhile, Strategy continues to make bitcoin acquisitions, illustrating the persistence of some accumulation strategies despite the sector’s slowdown.
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A graduate of Sciences Po Toulouse and holder of the blockchain consultant certification issued by Alyra, I joined the Cointribune adventure in 2019. Convinced of the potential of blockchain to transform many sectors of the economy, I committed myself to raising awareness and informing the general public about this ever-evolving ecosystem. My goal is to enable everyone to better understand blockchain and take advantage of the opportunities it offers. I strive every day to provide an objective analysis of current events, decipher market trends, convey the latest technological innovations, and put into perspective the economic and social issues of this ongoing revolution.
DISCLAIMER OF LIABILITY
The views, thoughts and opinions expressed in this article are solely those of the author and should not be taken as investment advice. Before making any investment decision, do your own research.
